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CIIHY (CITIC Securities Co) Piotroski F-Score : 4 (As of Dec. 12, 2024)


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What is CITIC Securities Co Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CITIC Securities Co has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for CITIC Securities Co's Piotroski F-Score or its related term are showing as below:

CIIHY' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 8
Current: 4

During the past 13 years, the highest Piotroski F-Score of CITIC Securities Co was 8. The lowest was 1. And the median was 5.


CITIC Securities Co Piotroski F-Score Historical Data

The historical data trend for CITIC Securities Co's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CITIC Securities Co Piotroski F-Score Chart

CITIC Securities Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 6.00 6.00 7.00 2.00

CITIC Securities Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 2.00 3.00 2.00 4.00

Competitive Comparison of CITIC Securities Co's Piotroski F-Score

For the Capital Markets subindustry, CITIC Securities Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CITIC Securities Co's Piotroski F-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, CITIC Securities Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where CITIC Securities Co's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 463.096 + 688.548 + 773.456 + 880.314 = $2,805 Mil.
Cash Flow from Operations was 1884.992 + 9788.958 + -4557.424 + 10766.327 = $17,883 Mil.
Revenue was 1978.528 + 1901.685 + 2242.164 + 2263.014 = $8,385 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(193592.844 + 203545.997 + 217639.446 + 206074.903 + 244730.943) / 5 = $213116.8266 Mil.
Total Assets at the begining of this year (Sep23) was $193,593 Mil.
Long-Term Debt & Capital Lease Obligation was $31,297 Mil.
Total Assets was $244,731 Mil.
Total Liabilities was $203,470 Mil.
Net Income was 681.308 + 786.144 + 822.26 + 699.951 = $2,990 Mil.

Revenue was 2081.821 + 2210.487 + 2220.333 + 1941.098 = $8,454 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(190220.562 + 187702.19 + 208996.967 + 199114.556 + 193592.844) / 5 = $195925.4238 Mil.
Total Assets at the begining of last year (Sep22) was $190,221 Mil.
Long-Term Debt & Capital Lease Obligation was $27,857 Mil.
Total Assets was $193,593 Mil.
Total Liabilities was $156,917 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CITIC Securities Co's current Net Income (TTM) was 2,805. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CITIC Securities Co's current Cash Flow from Operations (TTM) was 17,883. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=2805.414/193592.844
=0.01449131

ROA (Last Year)=Net Income/Total Assets (Sep22)
=2989.663/190220.562
=0.01571682

CITIC Securities Co's return on assets of this year was 0.01449131. CITIC Securities Co's return on assets of last year was 0.01571682. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

CITIC Securities Co's current Net Income (TTM) was 2,805. CITIC Securities Co's current Cash Flow from Operations (TTM) was 17,883. ==> 17,883 > 2,805 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=31296.91/213116.8266
=0.1468533

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=27856.651/195925.4238
=0.14217987

CITIC Securities Co's gearing of this year was 0.1468533. CITIC Securities Co's gearing of last year was 0.14217987. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Sep24)=Total Assets/Total Liabilities
=244730.943/203469.987
=1.20278645

Current Ratio (Last Year: Sep23)=Total Assets/Total Liabilities
=193592.844/156916.582
=1.23373095

CITIC Securities Co's current ratio of this year was 1.20278645. CITIC Securities Co's current ratio of last year was 1.23373095. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

CITIC Securities Co's number of shares in issue this year was 1559.841. CITIC Securities Co's number of shares in issue last year was 1544.558. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=2805.414/8385.391
=0.33455971

Net Margin (Last Year: TTM)=Net Income/Revenue
=2989.663/8453.739
=0.35364979

CITIC Securities Co's net margin of this year was 0.33455971. CITIC Securities Co's net margin of last year was 0.35364979. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=8385.391/193592.844
=0.04331457

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=8453.739/190220.562
=0.04444177

CITIC Securities Co's asset turnover of this year was 0.04331457. CITIC Securities Co's asset turnover of last year was 0.04444177. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+0+0+0
=3

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CITIC Securities Co has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

CITIC Securities Co  (OTCPK:CIIHY) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


CITIC Securities Co Piotroski F-Score Related Terms

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CITIC Securities Co Business Description

Address
No. 1 Tim Mei Avenue, 26th Floor, CITIC Tower, Central, Hong Kong, HKG
CITIC Securities Co Ltd is a brokerage and investment group that provides brokerage, underwriting and sponsoring, proprietary trading, investment banking, asset management, investment advisory, Margin financing and securities lending, Stock option market-making and other services. The company has five reportable segments namely Investment banking, Brokerage, Trading, Assets management and Other. It derives maximum revenue from Trading segment.

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